Mistakes are the usual bridge between inexperience and wisdom. ~Phyllis Theroux
Emotional Trading :Due to lack of experience, novice traders trade with emotions. Sometimes their ego is on stake. They enter into trade with hefty greed and close it with exaggerated fear. They trading instinct is easily stimulated by rumors, news and decision is made in haste without the backing of rationale. Sometimes greed comes into trade and profits dwindle to eventual loss with a hope of larger profit. One thing is very common among novice trader is a panic reaction with price fluctuations. If a trade is fail they are unable to accept that they committed a mistake thus carry a position to a level where the losses swells to uncontrollable level. They always rejoices even the smallest profit with great fanfare and gets dejected if they incur any loss. And this attitude severly affects their trading temperament for upcoming trades. Greed, fear, haste, impatience, dejection, exaggeration all these emotions hamper the trading activity.
Emotional Trading :Due to lack of experience, novice traders trade with emotions. Sometimes their ego is on stake. They enter into trade with hefty greed and close it with exaggerated fear. They trading instinct is easily stimulated by rumors, news and decision is made in haste without the backing of rationale. Sometimes greed comes into trade and profits dwindle to eventual loss with a hope of larger profit. One thing is very common among novice trader is a panic reaction with price fluctuations. If a trade is fail they are unable to accept that they committed a mistake thus carry a position to a level where the losses swells to uncontrollable level. They always rejoices even the smallest profit with great fanfare and gets dejected if they incur any loss. And this attitude severly affects their trading temperament for upcoming trades. Greed, fear, haste, impatience, dejection, exaggeration all these emotions hamper the trading activity.
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